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Arch Cru investors to be offered more compensation
Thousands of investors who were mis-sold investment funds called Arch Cru may receive more of their money back. The Financial Services Authority (FSA) is proposing to set up a £100m compensation scheme specifically for the 15,000 people affected. Several hundred independent financial advisers will have to compensate clients. They were told the funds were low-risk, when in fact the money was invested in private equity and riskier ventures. The Arch Cru funds, worth £363m, were suspended in March 2009. The funds, which are being wound down, are now worth only about £83m. The FSA stressed that the investors were not going to be compensated for their investment losses, but for the fact that the funds had been mis-sold on a wide scale....Read more hereYou must be logged in to post a comment.
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Many investors in failed investment funds group Arch Cru were given a financial lifeline last week when the City’s regulator announced its intention to go ahead with an historic redress scheme. It will require up to 600 financial adviser firms involved in alleged mis-selling to pay compensation of up to £40million to clients.But the money will not be paid until 2014 at the earliest and will potentially pit many financial advisers against longstanding clients. It will also do little to ease the pain for a small group of investors....Read more here: Couple's 'Frankenstein investment' ends in disaster: Up to 200 investors abandoned by Arch Cru rescue scheme
Press Release:
Compensation has begun to be paid by financial advisers to people who invested in the CF Arch cru Investment and Diversified funds (Arch cru) as a result of unsuitable advice. Over £8.26m has so far been received by consumers. Total redress due under the scheme is calculated to be £31.47m. In December 2012, it was estimated that the compensation package would deliver between £30m-£40m for affected investors. The money paid out under the scheme, which was overseen by the Financial Conduct Authority (FCA), is in addition to any redress investors may have received under a separate process administered by Capita Financial Managers......Read more here